Question
For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost
For several years Fister Links Products has held Microsoft bonds, considered by the company to be securities available-for-sale. The bonds were acquired at a cost of $600,000. At the end of 2018, their fair value was $730,000 and their amortized cost was $610,000. At the end of 2019, their fair value was $725,000 and their amortized cost was $620,000. At what amount will the investment be reported in the December 31, 2019, balance sheet? What adjusting entry is required to accomplish this objective (ignore interest)?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Balance Sheet
General Journal
What adjusting entry is required to accomplish this objective (ignore interest)? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
| No | Date | General Journal | Debit | Credit |
| 1 | December 31, 2019 | Unrealized holding lossOCI | ||
| 1 | Fair value adjustment |
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Data And Analytics In Accounting An Integrated Approach
Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk
1st Edition
1119722993, 978-1119722991
